Ports and terminals, as key points in the global supply chain, are constantly evolving and updating. Over the past fifty years, this industry has adapted to changes such as the shift towards containerization, the adoption of larger vessels, and the transition from paper documentation to electronic messaging. However, many port operations are still based on traditional methods such as the use of paper notes and radio calls, especially in smaller terminals and cargo ports.
Adoption of Artificial Intelligence in the Port Industry
With increasing pressures from outside the ports, artificial intelligence has emerged as a new wave in this industry. Shipping companies, logistics providers, and container lines that are customers of the terminals are heavily investing in artificial intelligence technologies. According to forecasts, spending on this technology is expected to gradually increase.
To assess the level of progress in the industry, BCG and TIC4.0, an international non-profit association for terminal operators and equipment and solution providers, surveyed over 100 leaders from the port and terminal ecosystem. The results indicate that artificial intelligence is no longer considered an experiment on the fringes of business. On average, respondents are currently using or considering 16 out of 43 identified use cases of artificial intelligence.
Challenges and Opportunities for Artificial Intelligence
The survey results show that the adoption of artificial intelligence in the industry is widespread, but evidence of its impact is rarely seen. While nearly half of the respondents (44%) have reached the next stages of AI adoption, only 4% have been able to show a significant increase in their revenue. Lack of transparency in return on investment is recognized as the main barrier to accelerating implementation, and this concern is particularly pronounced at lower organizational levels.
Business demands from customers for AI-based services are increasing, but respondents reported that they have retained almost all benefits within their internal operations. Activities related to forecasting, dispatch, and workflow integration have been identified as the main sources of expected benefits in the next three years.
Based on the findings, four main actions are recommended for the industry: proving value before scaling, strengthening infrastructure at the organizational level, shifting costs from setup to operations, and collaborating on developing business benefits.
